I'm not sure if this is just happening to me but thought I would post here in case others are experiencing similar issues. My site is setup to moderate all new members, i.e. they are put in the 'approval' status and then I manually activate them (to filter out the spam). Well this has worked well for Dolphin 7 except that I have now activated the Facebook Connect module and noticed a major flaw. When a new Facebook member connects to my site, all members on the entire site are set to Inactive status! This is a big problem and I am glad I did some testing, however I am not sure if it is isolated to my site, so I would be interested in hearing others experience with this module.
Thanks!